Owner flood coverage with no HOA flood policy

Washington State, King County. My wife and I own a townhouse in a 160 home community that is not in a FEMA flood zone (FEMA zone X). Our HOA master policy does not have flood coverage. We are exploring our own flood coverage.

Our insurer has quoted flood insurance that would cover $250,000 in building coverage (the FEMA maximum). We are curious about this part specifically. We are covering our contents for $50k.

We can assume that our HOA would levy a special assessment to homeowners to repair flood damage to buildings, given no master policy.

1) Would this quoted $250k coverage be applied to such an assessment?

2) In the event that the HOA decides against rebuilding post-flood, does this type of coverage pay out?

3) Similar to question 2: given the lack of flood insurance in our community (HOA and among homeowners), is covering the building a waste of our money?

Thank you kindly!